Össur hf. and Century XXII Innovations, Inc. Sign Definitive Stock Purchase Agre

Reykjavik, Iceland and Jackson, Michigan, US – November 20, 2000:  Össur (Icelandic Stock Exchange: HL/ÖSSUR) today announced that it has entered into a definitive stock purchase agreement to acquire Century XXII Innovations, Inc.  The closing is scheduled for December 4, 2000, subject to shareholder approvals and customary closing conditions.  A special shareholder meeting will be held at 11:00 am on December 4.<br>
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The acquisition is structured as a stock-for-stock transaction in which Össur will exchange 41,785,000 newly issued shares of common stock of Össur for all outstanding shares of Century.  Össur will also pay Century's shareholders USD one million under a three-year earn-out structure, subject to certain performance requirements.  The total consideration for the acquisition is USD 31.7 million, plus transaction expenses.  This is based on Össur's average stock price over the last thirty calendar days of ISK 64.9 per share and the USD/ISK exchange rate of 88.2.  The acquisition will be immediately additive to cash earnings per share of Össur common stock.  Total acquisition cost in excess of net assets acquired of approximately USD 31 million will be amortized in fiscal year 2000.<br>
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Century, a privately held corporation based in Jackson, Michigan, is the leading high technology innovator and marketer of premium prosthetic knees.  Century's products, protected by seven patents, are marketed in more than forty countries under the Total Knee brand.  Century was founded in 1993 based on an innovation by Finn Gramnäs.  Under the leadership of Bill Donahue and John Stonecipher, C.P. and in cooperation with Finn Gramnäs' continuing innovative product development efforts, Century has succeeded both in building the leading Total Knee brand and in producing consistent growth in revenues and earnings.<br>
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Century's revenues and normalized net income in fiscal year 2000, ending on December 31, are estimated at USD 10.7 million and USD 2.0 million, respectively.  These results do not take into account possible synergies between the operations of Century and Össur.  Over the last three years, both the revenues and normalized earnings of Century have been growing at compounded annual rates in excess of twenty percent.<br>
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Century's leading product line of prosthetic knees will join Össur's successful product portfolio of silicon liners and Flex-Foot feet.  The acquisition further strengthens Össur's leadership position in product development and marketing of innovative prosthetic products.  The combined companies will be in a preeminent position to provide prosthetists and amputees with superior service and products globally.<br>
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Jon Sigurdsson, Chief Executive Officer of Össur, made the following comments: “We are extremely enthusiastic about the potential to combine two of the world leaders in high technology innovation for prosthetic devices.  We are particularly pleased because our combined customer base of prosthetists and amputees will benefit enormously from this combination.  This merger accelerates our capabilities to offer our customers a complete system sale, with all premium prosthetic componentry available through one source.”<br>
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John L. Stonecipher, C.P. and President of Century said, “I look forward to being associated with the Össur Group.  A merger of Century XXII Innovations, Inc. with this premier prosthetic component manufacturer will accelerate Century’s R & D program, offering prosthetists and amputees many new and exciting prosthetic developments.”<br>
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“The merger of Century XXll Innovations, Inc. into the Össur Group is very exciting.  This will ensure the continued success of the Century product line and will contribute to the outstanding potential of the Össur Group” said Bill Donahue, Vice President of Century.<br>
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Össur is a global leader in the development, manufacturing and marketing of innovative prosthetic technology.  The product lines include Iceross, Dermo, Flex-Foot, Mauch and now Century's Total Knee brand.  Össur is headquartered in Reykjavik, Iceland with additional operations based in Aliso Viejo, California; Dayton, Ohio; Eindhoven, Netherlands; Manchester, U.K.; and, now in Jackson, Michigan.  Resulting from the recent announcement of the acquisition of Pi Medical AB and Karlsson & Bergström AB, Össur also will have operations in Helsingborg and Uppsala, Sweden operating as Össur Nordic AB.